State Street(STT)2024-08-01 12:12Financial Performance - Total fee revenue for Q2 2024 was 2,419 million in Q2 2023[34]. - Net interest income rose to 691 million in Q2 2023[34]. - Total revenue for Q2 2024 reached 3,110 million in Q2 2023[34]. - Net income available to common shareholders decreased by 10% to 726 million in Q2 2023[34]. - Earnings per common share (EPS) for Q2 2024 was 2.17 in Q2 2023[34]. - Total expenses increased by 3% to 2,212 million in Q2 2023[34]. - The provision for credit losses in Q2 2024 was 18 million reserve release in Q2 2023[40]. - Management fee revenue increased by 11% in Q2 2024, driven by higher average market levels and net inflows[44]. - Total revenue for Investment Servicing increased by 1% to 2,607 million in Q2 2023[163]. - Total revenue for Investment Management increased by 13% to 503 million in Q2 2023[165]. Assets and Management - As of June 30, 2024, State Street Corporation reported total assets of 239.16 billion[11]. - The company manages 4.37 trillion in assets under management (AUM) as of June 30, 2024[10]. - Assets Under Custody/Administration (AUC/A) reached 39.53 trillion as of June 30, 2023[46]. - Assets Under Management (AUM) increased by 15% to 3.83 trillion as of June 30, 2023[46]. - Total assets under management (AUM) reached 4,102 billion at the end of 2023[89]. - The Americas accounted for 29.951 trillion at the end of 2023[76]. Shareholder Returns - The company returned approximately 407 million to shareholders in Q2 2024 through common share repurchases and dividends, with dividends declared at 0.63 per share in Q2 2023[47][50]. - The company acquired 2.7 million shares of common stock at an average cost of 200 million under the share repurchase program[50]. Expenses and Costs - Total expenses increased by 3% in Q2 2024 compared to Q2 2023, primarily due to business investments and revenue-related costs[145]. - Information systems and communications expenses rose by 12% in Q2 2024 compared to Q2 2023, driven by higher technology investments[148]. - Other expenses increased by 29% in the first half of 2024 compared to the same period in 2023, mainly due to higher FDIC assessments and marketing costs[151]. Risk Management - Strategic risks include intense competition and pricing pressure, which could negatively impact profitability and financial results[25]. - The evolving regulatory environment may impact the volume of securities lending activity and related revenue in future periods[105]. - Credit risk is defined as the risk of financial loss if a counterparty is unable or unwilling to repay borrowings[203]. - The risk management framework focuses on material risks, including credit and counterparty risk, liquidity risk, operational risk, and market risk[201]. - The company conducts ongoing evaluations of the adequacy of the allowance for credit losses at least quarterly[204]. Economic and Market Conditions - Forward-looking statements indicate potential risks and uncertainties that could affect future results, including geopolitical and economic conditions[23]. - A 10% increase in worldwide equity valuations would result in a corresponding change in total management fee revenues of approximately 5%[87]. - Pricing pressure has historically impacted servicing fee revenues by approximately (3)% annually over the past five years[69]. Employee and Workforce - Consolidated total shareholders' equity stood at 23.8 billion as of June 30, 2024, an increase from $21.8 billion as of December 31, 2023[181].